Coordinating Thoughts on Coordination Failures

METEOR Working Paper No. RM/01/030

16 Pages Posted: 27 Oct 2002

Date Written: 2001

Abstract

Coordination failures constitute an alternative explanation for underemployment that complements the Keynesian and neo-classical views. The paper proposes to distinguish three classes of models with coordination failures. The classes are formed by strategic models with or without a coordinating role for prices, and general equilibrium models. The main insights resulting for each class of models are exhibited. It is argued that coordination failures are likely to arise in a decentralized economy, even under conditions where perfect competition could prevail. The paper concludes by pointing out several promising directions for future research.

JEL Classification: C72, D51

Suggested Citation

Herings, P. Jean-Jacques, Coordinating Thoughts on Coordination Failures (2001). METEOR Working Paper No. RM/01/030, Available at SSRN: https://ssrn.com/abstract=319224 or http://dx.doi.org/10.2139/ssrn.319224

P. Jean-Jacques Herings (Contact Author)

Tilburg University ( email )

Department of Econometrics and Operations Research
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 4668797 (Phone)
5000 LE (Fax)

HOME PAGE: http://https://sites.google.com/view/jean-jacques-herings/home

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